Public Sector Banks announce new loans

Public sector banks (PSBs) have announced support measures and launch of new loan products to mitigate economic impact of Covid-19 pandemic.

What are those announcements?

• PSBs would provide unsecured loans of up to 5 lakh rupees to individuals. Loan can be utilized to meet their and family members’ treatment cost.
• Indian Banks Association and State Bank of India announced three new loan products in Mumbai.
• Loans in Mumbai were announced by the basis of measures taken by RBI and Government of India.
• It will provide fresh lending support to vaccine manufacturers, hospitals or dispensaries, manufacturers & suppliers of oxygen, pathology labs, Ventilators, importers of vaccines, Covid drugs logistics firms and patients for treatment.
• Two other loans include are- Healthcare Business Loan of up to 2 crore rupees and Business loans for Healthcare Facilities of up to 100 Crore rupees.
• Healthcare business loan will be provided to set up oxygen plants under Emergency Credit Line Guarantee Scheme (ECGLS).
• Loan for Healthcare Facilities will be provided to set up or expand healthcare infrastructure and to healthcare products manufacturers.

Repayment of Loan

IBA and SBI announced, all the salaried, non-salaried and pensioners individuals can get an unsecured personal loan from ₹ 25,000 to ₹ 5 lakh to look after COVID-19 treatment. Repayment tenure is 5 years. SBI will charge interest of 8.5% per annum and other banks can also decide their interest rate.